MPSC: Federal Tax Credits Up to $1,500 for Certain Homeowner Energy Efficiency Improvements Expire in Six Months Contact:  Judy Palnau (517) 241-3323

July 1, 2010 The Michigan Public Service Commission (MPSC) today reminded homeowners that federal tax credits for certain energy efficiency improvements expire in six months. "These tax credits are one of the easiest ways for taxpayers to save on energy efficiency improvements they make to their homes," said MPSC Chairman Orjiakor Isiogu.  "And, once the improvements are made, they save again on their energy bills.  I encourage homeowners to take advantage of these tax credits before they expire." Homeowners who are considering the purchase of an energy efficient product may be eligible for a federal tax credit.  It is important to note that not all ENERGY STAR qualified products qualify for a tax credit. The credit is for 30 percent of the cost, up to $1,500.  It must be an existing home and a principal residence to qualify.  New construction and rentals do not qualify.  The credit expires on Dec. 31, 2010. The credit is for the following homeowner energy efficient improvements:  biomass stoves; heating, ventilating, air conditioning (HVAC); insulation; roofs (metal & asphalt); water heaters (non-solar); and windows and doors The ENERGY STAR website has more information on which products qualify and more. The MPSC is an agency within the Department of Energy, Labor & Economic Growth.

The average American household spends nearly 60% of its budget on housing and transportation, making them the largest expenses for American families. The U.S. Department of Housing and Urban Development (HUD) and Department of Transportation (DOT) want to cut these costs by providing access to more affordable housing and transportation options. They have formed a new high-level interagency task force that will focus on creating affordable, sustainable communities.

The task force is intended to better coordinate federal transportation and housing investments and identify strategies to give American families:

• Safe, livable, healthy communities;
• More choices for affordable housing near employment; and
• More transportation options, with the goal of lowering transportation costs, shortening travel times, and improving the environment.

In joining forces, these two federal departments, which might otherwise seem to have unrelated missions, show that transportation is a critical component of the true cost of housing. And with a goal of providing more transportation options, they are working toward making more housing affordable. All of this advances walkable neighborhoods, reduces driving and congestion, cuts greenhouse gas emissions, saves people money – and creates sustainable communities.

The HUD/DOT task force will:

Redefine affordability and make it transparent. The task force will develop federal housing affordability measures that include housing, and transportation costs and other costs that affect location choices. Although transportation costs now approach or exceed housing costs for many working families, federal definitions of housing affordability don't recognize the strain of soaring transportation costs on homeowners and renters who live in areas isolated from work opportunities and transportation choices.

Develop livability measures. The task force will research, evaluate and recommend measures that indicate the livability of communities, neighborhoods and metropolitan areas.

Undertake joint research, data collection and outreach. A working group was established in June 2008 to identify opportunities to better align federal programs and resources to reduce traffic congestion, increase transportation mobility, improve air quality and realize other related environmental benefits.

Harmonize HUD and DOT programs. HUD and DOT will work together to identify opportunities to better coordinate their programs and encourage location efficiency in housing and transportation choices.

Enhance integrated regional housing, transportation, and land use planning and investment. The task force will set a goal to have every major metropolitan area in the country conduct integrated housing, transportation, and land use planning and investment in the next four years.

These plans for creating sustainable communities were presented at a Congressional hearing entitled "Livable Communities, Transit Oriented Development, and Incorporating Green Building Practices into Federal Housing and Transportation." For the full text of HUD testimony, visit HUD's website.

 Posted: 03 Aug 2010 12:47 PM PDT 

Yes, verifiably, according to researchers in a recent working paper, “Forced Sales and House Prices”. 

An MIT economist and two Harvard researchers analyzed 1.8 million home sales in Massachusetts (1987 to 2009), finding that “foreclosure reduces the value of a house by 27 percent, on average.” 

Combine this with with their statistic that foreclosed homes make up roughly one in 12 houses with under $1 million left on the mortgage. Then consider a US Treasury statement that foreclosures can reduce surrounding home values up to 9 percent. This exposes the dramatic effect foreclosures are having on home prices-all home prices-across the country. 

Is this really shocking? Perhaps the size of the decrease in value of foreclosures is shocking, but certainly not that it happens. Short sales, a transaction in which the property can avoid becoming vacant, is increasingly sought after as a solution not only for homeowners facing foreclosure, but lenders looking to recoup more of their investment. Today, CDPE-designated agents are helping to facilitate hundreds of thousands of these transactions nationwide. Already this is helping communities recover and prices stabilize. This is a movement that will continue to make a difference. 

While prices continue to fall, interest in the marketplace seems to be warming up a bit with the weather. There is Neighborhood Stabilization money available from both Waterford Township and Oakland County to help get bank owned properties off the market.  If you know ANYONE who needs to buy a home, only for a primary residence, anywhere in Oakland County have them call me!  There is free money and unbelievable deals out there! The moratorium on foreclosures is over and the banks are once again ramping up their efforts.  We expect something from the Obama administration on March 4th regarding help for homeowners facing foreclosure but everything that I have read will not help may homeowners.  Stay tuned for the details forthcoming this week!  We're pretty busy right now but it remains a difficult task to get sales put together, keep them together and get them closed!!  However, I think we can expect better times very soon.  For those of us locally, much depends on the automotive industry, auto loans and the stimulus money that's been invested in Michgan.

Many of the local municipalities have funds available for homeowners under the Neighborhood Stabilization Program.  These funds are available for the purchase of principal residences and the properties must be REO's (bank owned properties that have been foreclosed on).  The funds are for down-payment assistance and you must qualify for the funds based on your household income. If you are interested in obtaining some of these funds please visit the Waterford Township website for more information.  There is only a million dollars available and when the money is gone, it's gone! We completed our Realtor application to participate in the program so we'll be approved to help you find a home if you qualify for the program.  Check out the website or call us for details.  Bernie is the lead on this program and you can always reach him at  810-459-4637 .  Watch for me good new about the real estate market coming soon!